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Law Ii Question Paper

Law Ii

Course:Cpa Part Iii

Institution: Star College Of Management Studies question papers

Exam Year:2009

Law II 2009.
Answer any FIVE questions.

QUESTION ONE

Explain the restrictions imposed on the name of a company (20mks)

QUESTION TWO

a. Describe the contents of a trust deed. (14mks)

b. Outline the advantages of a trust deed (6mks)

QUESTION THREE

Write explanatory notes on the following types of resolutions indicating the business requiring each type of resolution:

a. Ordinary resolution (6mks)

b. Special resolution (9mks)

c. Resolution requiring special notice (5mks)

QUESTION FOUR

Section 159 (1) of the Companies Act stipulates that every company shall appoint an auditor to hold office.

a. Discuss the main obligations of an auditor (16mks)

b. Explain the ways in which the auditor's remuneration is fixed (4mks)

QUESTION FIVE

Mrs. Akinyi Mburu and Mrs. Jerotich Simiyu intend to start a business in the tourism industry. Mrs. Mburu considers a partnership to be the best form of business while Mrs. Simiyu prefers a private company.

Advise Mrs. Mburu and Mrs. Akinyi on the following:

a. The advantages of a registered company over a partnership (14mks)

b. The advantages of a partnership (6mks)

QUESTION SIX

a. Explain the circumstances when a prospectus is not required in an issue of shares and debentures (6mks)

b. Discuss the civil and criminal liabilities relating to a prospectus (14mks)

QUESTION SEVEN

Miss Tishie Mulu has received a letter from a company in which she is a shareholder informing her that the company is making a call in accordance with the provisions of the articles of association.

Miss Tishie Mulu has approached you for advice on the matter.

Advise Miss Tishie Mulu on the following:

a. The difference between an instalment and a call (3mks)

b. The rules relating to making calls on shares (12mks)

c. The consequences of payment of a call in advance (5mks)

QUESTION EIGHT

Explain the procedure to be followed in a members' voluntary winding up (20mks)

Law Ii Question Paper

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